Investment Management: Oversight, Policies & Procedures

The Board of Regents is the governing fiduciary body of the University with the ultimate responsibility for the investment program. As such, the Regents have the responsibility for setting forth the mission of each of the investments pools, for determining the overall level of risk tolerance for each portfolio, and for establishing the investment oversight exercised by the Regents based on the general philosophy and principals as specified in the Board of Regents policies.

The Chief Investment Officer (CIO) and the staff of the Office of Investments & Banking (OAM) are charged with the responsibility for the day-to-day management of the investment program, treasury operations and the fiduciary oversight of all funds within their control. The Board of Regents and Administration have delegated to the CFO/Treasurer who has further delegated the following responsibilities to the CIO and OAM.

  • Make recommendations to the Board of Regents and the Investment Advisory Committee (IAC) with respect to overall investment strategies.
  • Implement the investment program by adherence to the asset allocation guidelines established by the Board of Regents and the sub-asset class targets recommended by the IAC.
  • Evaluate new investment opportunities.
  • Evaluate asset performance characteristics including volatility, risk, return expectations, and correlations as part of the ongoing evaluation of asset allocation strategies.
  • Oversee relationships with outside investment managers.
  • Prepare summary reports analyzing investment performance.
  • Establish and implement investment manager monitoring and compliance procedures.
  • Conduct investment manager searches, make hiring recommendations, terminate managers when necessary.
  • Retain and terminate consultants and other service providers.
  • Establish performance benchmarks and investment guidelines for outside investment managers.
  • Reconcile custodial bank and investment manager activity and trading data to insure compliance with policies and accuracy.
  • Prepare quarterly reports made to Board and IAC as it relates to strategy implementation, progress and performance for all investment pools.
  • Identify and implement operational procedures that enhance the efficiency and cost effectiveness of the investment program.

Investment Advisory Committee (IAC)

The IAC includes the Chair of the Board of Regents Finance Committee, CFO/Treasurer, CIO, five outside finance professionals and a university faculty member. Members hold three year terms. The committee meets at least quarterly and more frequently as circumstances may require.

Related Policies and Procedures